LESSON 4 1 Preparing a Chart of Accounts

LESSON 4 -1 Preparing a Chart of Accounts 1. Describe the two parts of an account number. 2. List the two steps for opening an account. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2 Competency: Understanding the Accounting Cycle for a Service Business n Objectives: n 42 Post general entries to the general ledger. n 50 Summarize the progression from source documents to journals. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -1

3 Chapter 4 Objectives n Define accounting terms related to posting from a journal to a general ledger. n Identify accounting concepts and practices related to posting from a journal to a general ledger. n Prepare a chart of accounts for a service business organized as a proprietorship. n Post separate amounts from a journal to a general ledger. n Post column totals from a journal to a general ledger. n Analyze and journalize correcting entries. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -1

4 n Ledger – A group of accounts. n General ledger – A ledger that contains all accounts needed to prepare financial statements. n Account number – The number assigned to an account. n File maintenance – The procedure for arranging accounts in a general ledger, assigning account numbers, and keeping records current. n Opening an account – Writing an account title and number on the heading of an account. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -1

5 RELATIONSHIP OF A T ACCOUNT TO AN ACCOUNT FORM page 91 Balance columns CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -1

6 CHART OF ACCOUNTS CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 92 LESSON 4 -1

7 ACCOUNT NUMBERS CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 92 LESSON 4 -1

8 OPENING AN ACCOUNT IN A GENERAL LEDGER 1 page 94 2 1. Write the account title. 2. Write the account number. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -1

9 TERMS REVIEW page 95 In your Chapter 4 Terms Word Document and Save. AS Chapter 4 Terms. Your. Name n n n ledger general ledger account number file maintenance opening an account CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -1

10 Exit Ticket for Chapter 4 -1 In a Word Document, Save. AS: Chapter 4 -1 AYUYour. Name Drop a copy in my In. Box today before you leave! 1. Describe the two parts of an account number. 2. List the two steps for opening an account. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -1

11 Chapter 4 -1 Assignments Complete on Aplia n Work Together 4 -1 n On Your Own 4 -1 n Application Problem 4 -1 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4 -1